Tokyo to subsidize Haneda airport’s domestic SAF prices to same level as jet fuel

The Tokyo Metropolitan Government will subsidize domestic sustainable aviation fuel prices at the Tokyo International Airport in Haneda to the same level as conventional jet fuel prices with an additional program, it said in a statement July 2.

According to the statement, the government will give a subsidy of up to Yen 100/liter (62 cents/l) for the price difference between domestic SAF and conventional jet fuel to Tokyo-based suppliers in its Emergency Project for Domestic SAF Use and Promotion.

Combined with the program announced April 6, the suppliers will have the maximum subsidy of Yen 200/l for domestic SAF supply at Haneda Airport, according to the statement. The combined maximum amount of subsidies will reach up to Yen 675 million with 4.5 million liters. The Tokyo government will accept applications for the emergency program until July 15 and provide subsidies to eligible suppliers until March 31, 2027, after reaching a final decision in July.

The government previously said it would financially support suppliers in Tokyo by up to Yen 100/l for the price difference between domestic and international SAF at Haneda airport. It said May 20 that it has accepted Cosmo Oil Marketing, an affiliate of Japan's third-largest refiner Cosmo Oil, into the program, according to the Tokyo government's website.

Platts, part of S&P Global Energy, assessed SAF (HEFA-SPK) FOB Straits at $2,440/metric ton July 2, unchanged from the previous assessment.